The Department of Housing and Urban Development has ruled that Federal Housing Administration borrowers may obtain private market flood insurance.

The National Association of REALTORS® president Kenny Parcell released the following statement on the news:

“The National Association of REALTORS® applauds HUD for issuing the FHA final rule opening the door to private market flood insurance options in addition to the National Flood Insurance Program,” said Parcell. “The new rule is a victory for consumers, for choice, and for flood coverage that will protect more borrowers and property from the No. 1 natural disaster in the United States. NAR has long advocated for an updated rule to address an inequality with conventional borrowers, and this action will increase the flood insurance choices available to FHA borrowers.”

In the wake of this new rule, FHA borrowers will have a choice between federal flood insurance and private flood insurance.